Queensland will pay more than $A2 billion in interest on debt next financial year.
Treasurer Tim Nicholls said the state would borrow again to continue its hospital building programme and debt will increase 2013-14 to plateau at the end of 2014-15.
"In 2013-14 alone, more than $A2 billion will be spent servicing the government debt we inherited from Labor," he said.
AAP reports a debt figure for 2013-14 was not provided.
Mr Nicholls will present the state budget to parliament on Tuesday. He said it will be an "easier" task than last year, when 14,000 public servant positions were axed.
However, the government is dealing with an unexpected $A1.2 billion write down in tax and royalty revenues and the deficit has grown to more than $A7 billion.
A return to surplus has been delayed by a year until 2015/16.